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All content in this area was uploaded by Nicholas Wilson on Jun 18, 2019
Content may be subject to copyright.
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 21
AN EMPIRICAL RESEARCH OF FACTORS AFFECTING CUSTOMER
SATISFACTION: A CASE OF THE INDONESIAN E-COMMERCE INDUSTRY
Nicholas Wilson1, Regina Christella2
1Bunda Mulia University, Jakarta
2Pelita Harapan University, Tangerang
email : wp8989@yahoo.com
rcp2828@yahoo.com
ABSTRACT
The purpose of this study is to analyze the effect of website design, reliability, time saved, product variety,
and delivery performance towards customer satisfaction in the Indonesian e-commerce industry. The
instrument for collecting the data is using the questionnaire. The number of samples that obtained in this
study is 200 samples, in which, 15 of them should be omitted since those questionnaires weren’t filled
properly, resulted in a total of 185 samples being deemed usable and used for this study. The data were
analyzed using PLS-SEM Method. The results of this study found reliability, time saved, product variety,
and delivery performance has positive and significant effect toward customer satisfaction, in which product
variety has the highest effect toward customer satisfaction among the other variables. However, this study
also found out that there is no significant effect between website design and customer satisfaction. This
study further suggests that company specializing in the e-commerce industry should always enhance their
product and services to their customer, in which customers will be satisfied, thus increasing their likeliness
to repeat their purchasing experience on the company in the future.
Keywords: Satisfaction; website design; reliability; time saved; product variety; delivery performance
ABSTRAK
Penelitian ini dilakukan guna mengetahui secara mendalam pengaruh desain website,keandalan,
penghematan waktu, variasi produk, dan kinerja pengiriman terhadap kepuasan pelanggan pada industri
e-commerce di Indonesia. Penelitian ini menggunakan metode survei, dimana, kuesioner digunakan sebagai
instrumen untuk mengumpulkan data. Sebanyak 200 responden berpartisipasi pada penelitian ini, dimana,
15 kuesioner harus dibuang karena pengisian yang tidak lengkap. Dengan demikian, sebanyak 185 data
yang valid dan reliabel digunakan untuk selanjutnya digunakan dan diproses pada penelitian ini. Seluruh
data diolah dengan menggunakan metode partial least squares-structural equation modelling (PLS-SEM).
Berdasarkan hasil pengolahan data, diperoleh hasil bahwa reliability, time saved, product variety, and
delivery performance memiliki pengaruh yang positif dan signifikan terhadap kepuasan pelanggan, dimana,
variabel product variety memiliki pengaruh yang paling besar terhadap kepuasan pelanggan dibandingkan
dengan beberapa variabel yang lain. Sementara itu, hasil pengolahan data pada penelitian ini juga
menemukan bahwa website design tidak memiliki pengaruh yang signifikan terhadap kepuasan pelanggan.
Berdasarkan hasil ini, maka peneliti ingin merekomendasikan kepada seluruh perusahaan Indoesia yangn
bergerak di bidang e-commerce untuk dapat terus meningkatkan performa perusahaan berkaitan dengan
kualitas produk dan jasanya kepada pelanggan, dengan harapan bahwa hal ini dapat meningkatkan kepuasan
pelanggan serta meningkatkan intensi pelanggan untuk dapat mengulangi aktivitas pembelian terhadap
perusahaan tersebut di masa mendatang.
Keywords: Kepuasan pelanggan; desain website ; keandalan ; penghematan waktu; variasi produk; performa
pengiriman
Draft awal : 19 Juli 2018 ; Direvisi : 5 November 2018 ; Diterima : 7 November 2018
1. Introduction
Technology had rapidly evolved
throughout the time, in which it had
enabled people to work and complete their
activities easier and in the more efficient
way (Wilson & Keni, 2018). One example
of this trend is the emergence and the rising
popularity of the internet. Internet is a
global networking system, which allows
people to communicate globally, search
22 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
any information easily, and allow people to
sell and/or purchase product or service via
online. In terms of business, the rapid
development of the internet has affected
the way business is conducted (Kaur,
2011). Due to the development of internet,
the way people conduct business has
changed into a more sophisticated ways.
For example, to be able to establish a
business, there’s no need for seller to build
a physical store anymore, and there is no
face-to-face interaction between the seller
and buyer. Therefore, when the buyer
wants to buy products or services, they can
directly buy it via online or through the
website. In the modern term, doing the
business activities in this ways could be
defined as electronic commerce.
E-commerce could be defined as
commercial transactions between two
parties, organizations and individuals, in
which conducted through networks or
digital technology (Psaila & Wagner,
2007). E-commerce includes some types of
activities, such as retail shopping, banking,
food ordering, ticketing, etc. Mostly,
electronic commerce utilize websites as a
place for transactions, although it may
utilize another range of technologies such
as e-mail, mobile application, or even
social media. E-commerce is a kind of new
business model that has sparked a change,
especially in the form of marketing.
Marketing in the context of the
e-commerce industry could be referred as
an attempt made to market a product or
service, and also to build customer
relationship among the seller and buyer by
using electronic media or the internet
(Kotler & Amstrong, 2014, p.678). In
terms of the competition in the e-commerce
industry, because there are so many new
competitors popped out in the industry,
then it is compulsory for the existing
companies to find some ways in order to
maintain it’s lead and success in this
industry. Regarding this statement,
customer satisfaction became an important
issue that company should put their focus
on. Customer satisfaction is a tool for the
company to get added value from its
customers, and also could act as a factor
which enable the company to survive in the
competitive market environment.
Briefly, satisfaction could be defined
as an overall evaluation made by a
consumer, after experiencing the product or
service perceived performance compared
to their expectations (Mosahab et al.,
2010). Therefore, in terms of maintaining
customer satisfaction, there are several
factors in which had been proven effective
in affecting customer satisfaction toward a
company. Luo et al., (2012) stated that the
design and the visual appearance of the
website act as an interface between the
buyer and the seller, in which website with
a good design had a greater chance in
making customer satisfied. Other than
website design, reliability had become one
of the important aspects for achieving
customer satisfaction (Zaim et al., 2010).
Similarly, time and browsing saving by the
website are likely to be proved in more
positive relationship to satisfaction
(Ranjbarian et al., 2012). Moreover, on the
context of online store, the chance to offer
wide range of product are bigger than
physical store (Saprikis et al., 2010). The
reason is online store has many alternatives
due to the unlimited shelf-space as
virtually. Thus, online store has more
chance to satisfy their customer by offering
diverse range of product and try to fulfill
the customer need. Delivery performance
also an important aspects in online store, in
which delivering right products without
defect, packaged the product safely,
products should be able to meet the
promised delivery schedule or should be
called on time, will make the online
customer satisfied or pleased with the
services (Ziaullah, 2014). This research
was conducted in order to analyze whether
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 23
the factors described above could actually
affect customer’s satisfaction in the
Indonesian e-commerce industry. Previous
research by Zhou et al.,(2009) and Wilson
and Keni (2018) only assess the impact of
service quality and website design quality
toward customer satisfaction in the
e-commerce industry, which imply that
there might be another factors affecting
customer satisfaction which yet to be
explored. This research was conducted in
order to fill this gap.
2. Literature Review
2.1 Marketing and Internet Marketing
Marketing itself refers to the process
of creating, communicating, delivering
value to customers and build customer
relationship in order to get benefit of it such
as profitability and customer equity in long
term period of the time (Kotler & Keller,
2009; Wilson et al., 2018). Marketing is
also about identifying human and social
needs, then match company’s product to
their needs, and get profitability of it
(Kotler & Keller, 2009). Then, according to
Pillai et al., (2010), the activities of
marketing are including product planning,
pricing, promoting or advertising,
distributing products, which aimed to
fulfill and satisfy their customer.
Marketing, especially on its strategy
can be adapted based on the situations and
conditions that the company will face on
the market (Ward, 2016). In todays
development of internet, the way to market
company’s product can be more easily
done through the internet. Internet
marketing (also known as e-marketing or
web marketing) is an attempt made to
market a product or service and also build
relationship through or using electronic
media or the internet (Kotler & Amstrong,
2014). The purpose of online marketing is
to reach potential customers through the
channels where people spend time on
searching, shopping, or even socializing by
online.
Marketing via the internet is also the
way to widen the market coverage of the
company (Linton, 2017). This means that
the company’s brand or product
information can reach the people in certain
areas or even abroad, without having to go
directly to the area to promote the product.
Anyone with an online business, as well as
most offline businesses, can participate in
online marketing by creating a website and
build customer relationship at little cost
than the traditional one (Linton, 2017). The
online company primarily use strategies to
market their product or service online, such
as website design strategies, online
promotions, email marketing, search
engine optimization, social media,
pay-per-click advertising, blogs, et cetera
(Ward, 2016).
2.2 Electronic Commerce
Briefly, e-commerce reflects to the
commercial transactions between two
parties, organizations and individuals,
which conducted through networks or
digital technology (Psaila & Wagner,
2007). E-commerce is often misplaced for
e-business, but actually they are different.
“E-business is the form of optimization of a
company’s business activities that use
digital technology, and does not involve an
exchange in value” (Strauss & Frost,
2014). E-business has a wide range of
business, not only about trading, but
includes collaboration of business partners,
customer service, job vacancies, et cetera.
But, when an electronic business involve
transmitting value, then it is already an
e-commerce.
Strauss and Frost (2014), also define
e-commerce is the subset of e-business that
concerned on transactions, such as buying
or selling or paying or marketing via
online, digital value creation, virtual
marketplaces, et cetera. (Strauss & Frost,
24 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
2014). E-commerce typically uses the
website to perform the commercial
transactions, even though it may also uses
other platform, such as electronic mail,
electronic data interchange, electronic
funds transfer, and other networks based
technologies in which those networks will
automatically move to electronic
environment and change the way they
operate.
2.3 Satisfaction
There are many literature has
defined or measured satisfaction in many
ways. Satisfaction shortly refers to the
customer’s overall assessment to the
product and service performance of the
company (Ludin & Cheng, 2014).
Satisfaction also reflects to the customer
response to the overall product
performance of an organization measured
over a set of customer needs (Tjiptono,
2008). Another definition of satisfaction is
overall evaluation from the customer after
experiencing the company’s product or
service performance, in which if the
company’s performance matches their
expectations then the customer is satisfied
(Mosahab et al., 2010). Customer
satisfaction is also not an absolute concept,
but rather relative to customer's experience
of shopping and/or using the product or
service (Tjiptono & Chandra, 2011).
Therefore, to gauge the concept of
satisfaction can use several factors such as
expectations and performances of the
company.
Meanwhile, satisfaction also defined
as an emotional state of pleasure or
disappointment where a person may feel
due to comparing their perceptions
(outcome) and expectations of product or
service’s performance (Kotler & Keller,
2009). These comparison means that if
product or service’s perceived performance
matches their expectations, the customer is
satisfied. But, if the performance remains
below expectations, the customer is
dissatisfied or dissapointed. If the
performance exceeds expectations, the
customer will be highly satisfied or
delighted. In effort to achieve customer
satisfaction, Kaihatu et al., (2015) stated
that expectation and perception are
important things that needed to be
understood. Perception is the subjective
judgment on the actual performance of the
goods or services that received or
experienced by customer, while customer
expectation is the standard or reference that
customer had before they receive the
experience, in which the standard could be
built by the past buying experience,
product advertisement, word of mouth, etc.
2.4 Website Design
Briefly, website design explained
about the appeal of user interface design
that developed for the visitors (Maiyaki &
Mokhtar, 2016). Website design reflects to
the aesthetics elements, such as color,
graphic, or text, together with the ease of
use and visual attractiveness which is
presented directly to the website visitors
(Bressolles & Durrieu, 2011). Moreover,
website design also can be defined as any
components or elements that being part of a
website, such as content, organization, and
structure of the site, which are visually
appealing and pleasing to the eye (Kassim
& Abdullah, 2010).
On the e-commerce environment,
website serves as the interface between an
online retailer and its consumer. Thus, the
design of website has important role for
online retailer to create good “first
impression” for the visitors. But it’s a kind
of challenge to create a well-designed
website that could give good first
impression for the visitors (Kotler &
Keller, 2009). The well-designed website
could be seen through clear layout, ease of
site navigation, well-organized appearance,
and the information on the website is
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 25
up-to-date (Tao et al., 2009). Similarly,
website design should be fast speed of
download and clear product information
(Francis, 2009). Besides that, if the website
design classified as good, then it will build
on post-purchase satisfaction and create
buying interest to the online website (Luo
et al., 2012).
2.5 Reliability
“Reliability defined as an ability
from service provider, such as company or
organization, to deliver promised services
to customer accurately and dependably”
(Auka et al., 2013). The concept of giving
service as promised can be interpreted that
the company able to keep the promises and
able to perform the service right on the first
time without any mistakes for customer.
Reliability can be described through giving
best performance of services, available
products to be sold, and error-free
transaction processing. Iberahim et al.,
(2015) also added ways in describing this
concept, such as delivering services in
designated time and how the company or
organization handle the problem faced by
customer.
In the context of e-commerce,
website is a tool to communicate and
interact with the customer and the company
provides the product or service through the
website. Hence, reliability can be adapted
into e–commerce, which refers to the
ability of the website to deliver the actual
service performance as promised
dependably (Swaid & Wigand, 2007). The
measurement for reliability on website
e-commerce including several dimensions,
such as fulfill orders correctly, honest to
the product offered online, updating
website frequently, website runs smoothly,
or error free in online transactions, keeping
personal information secure, accurate in
online purchasing, and delivering the order
promptly (Omar et al., 2015). The stocks of
product that will sell it to customer is also
important to be considered; When
customers selects the product, then the
pages wrote that stock has been sold out, it
shows that the website can’t performs the
service as promised and can’t be relied on
by the customer.
2.6 Time Saved
Time is an important thing for every
person (Khalil, 2014). Time could be
termed as money by some people so that
they could manage their time effectively.
Moreover, people define time in such a
way in order to be able to do several
activities at one time. Unfortunately, in this
modern era, people are very busy with
work and leisure activities quickly taking
over all the “time” in the whole day. While
some people could have much time to shop,
others simply don’t have time as they are
too busy with working. This arises the issue
of perceived time pressures, which is
described as the degree to which an
individual is lacking in time because of
many task of living to be done (Bashir et
al., 2015). This perceived pressure
primarily come out from the situational
factor, in which people are having too
much work or too many things to be done.
Therefore, this is where online shopping
become solution as it saves valuable time in
which can put to better use elsewhere
(Khalil, 2014). One of the best reasons to
shop online is the ability to save time and
also their energy. They do not need to visit
physical store and no limit business hours
to shop where it will make consumers’ life
easier indirectly. Still, they do not have to
wait in checkout lines or be crowd in store,
shopping at home all day, and saving travel
costs. Time saved further described as the
extent of time and/or effort spent by
customer when make a purchasing in the
online store under considerations (Lee &
Joshi, 2007). In online stores, customers
expect to save on time spent in searching
26 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
for the needed product in comparison to
traditional stores. They also need minimal
effort to browse an entire product
assortment inside the online store. But
mostly, online shopping can reduce
consumers’ shopping time, especially for
those consumers whose times are perceived
to be costly when they do offline shopping.
Conversely, customers are also aware
about how long the time that they spent
while doing a transaction over the webstore
(Nwokah & Juliet, 2016). If the process of
doing transaction take a long time, so
customer’s time is being wasted and end up
to dissapoitment. Similarly, Seiders et al.,
(2007) also stated that easy to browse or
search the information through the web
store, fast transaction and browsing, and
convenience using the website for
shopping are the consideration in minimize
customer’s non-monetary costs (time and
effort) during shopping, and hence
resulting in customer satisfaction.
2.7 Product Variety
The assortment of products available
in-store, and provided by the firm or
organization can be defined as product
variety (Kotler & Keller, 2009). Product
variety also reflects as the quantity of
different product types offered within a
single product category (Maiyaki &
Mokhtar, 2016). The main reasons of
offering a wide variety of product is the
consumer itself, in which they are the
sources of demand for the product (Ho &
Tang, as cited in Kim, 2006). For any firms
or organizations, providing diverse range
of products will helps to meet the
specialized demands of the customer (Xia
& Rajagopalan, 2009). Similarly, it will
also give many preferences for customer to
choose based on their need, want, taste, or
even budget. The variety of the product
further can increase the likelihood at least
one product offered can closely match an
individual preference. In addition, on the
context of online store, the chance to offer
wide range of product are bigger than
physical store (Saprikis et al., 2010). One
of the reason is online store has many
alternatives due to the unlimited
shelf-space as virtually. Thus, online store
has more chance to satisfy their customer
by offering diverse range of product and try
to fulfill the customer need. This action can
also give companies more profit, build
long-term relationship with their consumer,
and attract new customer to take a look and
then make a purchase in the store.
2.8 Delivery Performance
In brief, delivery performance
explains about the timeliness of the firm in
delivering or sending their good or service
to the customer (Lee & Joshi, 2007).
Delivery time in the context of website
could be the gauge for item “place” in
marketing mix, which is stands on how the
product or service is dispatched on-time to
the final destination (Abdallah & Jaleel,
2016). Further, delivery performance
describes about “how well the product is
delivered to the customer, including the
speed, accuracy, and care along the process
of delivering to the final destination”
(Kotler & Keller, 2009).
In the scope of e–commerce, delivery
has been a famous issue among the online
customers. In purchasing goods by online,
customers usually faces several issues
related to delivery, such as delayed,
product damage, and wrong product
shipped (Lee & Joshi, 2007). First, even
though the website has well-designed or
easy to use, the customer may switch to the
other online store or back to the physical
store if the delivery performance is not
offered reasonable time or it could be said
as delay. But, this problem can occur by
external factors beyond the firm’s control,
such as traffic, road damage, and weather
conditions on certain months (Bourlakis et
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 27
al., 2011). Second, the issue of product,
together with the package is damaged.
These may be caused by the trip along the
delivering by courier or the company did
not check the product before send it to the
courier. So the company should be
responsible on it by trying to fix this issue,
such as offering the return program by the
designated time, giving voucher as the
form of apology, et cetera. Third, the
delivery performance concerned about
product shipped have to be the same as they
ordered before over the website. Further,
the retailer or company also must deliver
the products that same as the graphic and
description listed on their website. These
three issues will grow disappointment or
make a perception that this company could
not be reliable, as it is not delivered as
promised before. Customer prefer faster on
delivery time, because online shoppers are
anticipating quicker timely delivery than
going to the physical store. These services
such as timely and reliable delivery will
make the customer satisfied then they will
keep using the same online store on the
next day.
2.9 Effect of Website design toward
customer satisfaction
Website design has been an
important thing to be focused, in which it is
the interface between online consumer and
the retailer. Site design can be regarded as
the extent to which the site developed and
designed carefully for visual attractiveness,
easy access, and simple navigation to the
visitors. If the retailer design their website
as well, it will further attract the consumer
to scroll, searching the products, and made
a purchasing on its page. It will also reduce
the time on information search, make the
consumer happy to operate the website,
then resulting in satisfied and pleasure
based on its design (Luo et al. 2012).
Figure 1. Research Model
Source: Alam & Yasin (2010)
Based on the previous research
conducted by Guo et al., (2012), Liu et al.,
(2008), Alam and Yasin (2010), Karim
(2011), Kassim and Abdullah (2010), and
Chen et al., (2012), there is positive effect
between website design and customer
satisfaction on the context of online
shopping. According to Sakhaei et al.,
(2014) and Ling et al., (2016), on the sector
of internet banking, website design also has
positive relationship to online customer
satisfaction. Thus, author would like to
posit the first hypothesis:
H1 :Website design positively affect
satisfaction
2.10 Reliability positively affect
satisfaction
Reliability is one of the important
aspects for achieving customer satisfaction
(Zaim et al. 2010). Reliability refers to the
ability from the company or organization to
provide promised service dependably. If
the company fulfills the service as
promised to customer, then the customer
will satisfied and declares that the company
is dependable. However, the better the
consumers' perception of company’s
Satisfaction
H3
H1
H2
H4
H5
Delivery
Performance
Reliability
Website
Design
Time Saved
Product
Variety
28 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
reliability, customer satisfaction will also
be higher.
Based on prior research conducted by
Sakhaei et al., (2014) and Ma (2012) on the
online banking sector, reliability has a
positive influence to customer satisfaction
directly. According to the research by
Gunarathne (2014), Hossain (2012), Minh
et al., (2015), Rao and Sahu (2013), and
Tuan & Linh (2014), there is a positive
effect between reliability and guest
satisfaction on the hotel industry.
Moreover, Alam and Yasin (2010), Swaid
and Wigand (2007), Karim (2011), and
Omar et al., (2015) has conducted a
research on the online shopping context,
resulting that reliability positively
associated with customer satisfaction.
Dreheeb et al., (2016) has found that
reliability significantly related to user
satisfaction with the use of e-learning
system. Siddiqi (2011) chose banking
industry for his research, has found that
reliability has positive correlation to
satisfaction. From the previous studies
above, reliability and customer satisfaction
have positive relationship with each other,
then the increase or decrease in reliability
will affect the increase or decrease of
customer satisfaction. Thus, author would
like to posit the second hypothesis:
H2 :Reliability positively affect
satisfaction
2.11 Time saved positively affect
satisfaction
Savings in time is one of the
advantages on shopping through website or
online (Nwokah & Juliet, 2016). When the
web store offers access anytime and
anywhere, no need to queue, speedy and
fast transaction on the pages, customers are
being satisfied and pleased as those
examples can save their time and energy
(Ahmad & Ali, 2011). Similarly, time and
browsing saving by the website are likely
to be proved in more positive relationship
to satisfaction (Ranjbarian et al. 2012).
There are several studies show a positive
relationship between time saved and
customer satisfaction. On the online
shopping context, Lee & Joshi (2007) and
Ranjbarian et al., (2012) found that time
saved is associated with satisfaction. On
the electronic banking sector, Ahmad & Ali
(2011) also found that time saving has a
relationship towards customer satisfaction.
According to those prior study, it could be
said that if the website or online company
could saved consumer’s time when they
bought products through the web store,
then it could make them satisfied and
pleased. Therefore, author would like to
posit the third hypothesis:
H3 :Time saved positively affect
satisfaction
2.12 Product variety positively affect
satisfaction
Product variety is the broad
categories of product provided by the
company aimed to fulfill consumer demand
and needs. Szymanski and Hise stated that
wide assortment of products may attract the
customers and satisfaction would be more
positive when online stores provide broad
variety of products (Guo et al., 2012).
Saprikis et al., (2010) further stated that
web store has more opportunity to provide
many categories of products into the store
compared to the traditional one. By
offering broad variety of products to online
consumers, they have many preferences to
choose product based on their need, want,
or taste. Offering many preferences will
further make the customers satisfied as the
company can meet and fulfill the
heterogeneous customer demand through
the online store.
According to prior study by Alam
and Yasin (2010), Liu et al., (2008), Lin et
al., (2011), Guo et al., (2012), and Ziaullah
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 29
et al., (2014), it were found that product
variety has a positive effect on customer
satisfaction in the online shopping
environment. This means that wider
product variety offered by the company
will increase satisfaction of the customer.
Therefore, author would like to posit the
fourth hypothesis:
H4 :Product Variety positively affect
satisfaction
2.13 Delivery performance positively
affect satisfaction
In the online shopping environment,
timely and reliable delivery is the two
important roles for making the online
consumer satisfied or pleased (Ziaullah et
al., 2014). The reliable delivery refers to
the delivering right products without defect
and packaged the product safely; and
products should be able to meet the
promised delivery schedule or should be
called on time. If the company performs
their delivery service such as late or unsafe
products, customers can switch easily to
another web store and just a single click
away or even customer moved to the
conventional shop.
According to the studies by Lee &
Joshi (2007), Liu et al., (2008), Lin et al.,
(2011), Dharmesti & Nugroho (2012),
Alam & Yasin (2010), Ziaullah et al.,
(2014), and Guo et al., (2012), there is a
positive influence between delivery
performance and customer satisfaction on
the online shopping environment.
Moreover, based on Wu & Zhang (2015)
and Kedah et al., (2015), on the context of
online food ordering service, delivery
performance has an association with the
customer satisfaction in which the food
they have ordered can be delivered fast and
safely, and they can enjoy free charge of
delivery service. Therefore, author would
like to posit the fifth hypothesis:
H5: Delivery performance positively
affect satisfaction
3 Research Method
This research was conducted by
personally distributing a total of 200
questionnaires to the respondents, in which
respondents in this research were those
who have ever visited and made a
purchasing activity toward an e-commerce
website in Indonesia. The amount of
sample size used in this research were
drawn based on the recommendation of
several researcher, as Hair et al., (2010)
stated that for a research which
implemented the structural equation
modeling (SEM) method, a sample size
between 150 and 400 respondents were
enough to justify the results. Moreover,
Beavers, Iwata and Lerman (2013) stated
that for a multivariate study, the minimum
sample size required was 150, while the
maximum amount of sample size required
was 300 sample. Meanwhile, this research
implemented non-probability sampling, in
which, judgemental sampling was chosen
as the sampling method in this research.
Judgemental sampling method was
implemented in order to ensure that all
subjects or respondents participated in this
research are the one who had ever bought a
product through an e-commerce website.
Moreover, regarding the questionnaire
used in this research, a total of 22 items
representing all six variables were included
in the questionnaire, in which out of 22
items, four items representing variable
website design were adapted from Guo et
al., (2012) and Liu et al., (2008); four items
representing variable reliability were
adapted from Swaid and Wigand (2007)
and Sakhaei et al., (2014); three items
representing variable time saved were
adapted from Lee and Joshi (2007); three
items representing variable product variety
were adapted from Guo et al., (2012); four
items representing variable delivery
30 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
performance were adapted from Guo et al.,
(2012) and Lee and Joshi (2007); and four
items representing variable customer
satisfaction were adapted from Guo et al.,
(2012) and Fang et al., (2014).
Furthermore, the questionnaire of this
research used likert scale, in which
respondent’s responses to the item on the
questionnaire were ranging from 1 to 5 (5 =
Strongly Agree, 4 = Agree, 3 = Neutral, 2 =
Disagree, and 1 = Strongly Disagree).
Before the research was conducted, a
pretest study was conducted by distributing
the questionnaires to a total of 50
respondents to ensure the validity and
reliability of the questionnaire, and also to
ensure the clarity of the questionnaire, in
which respondents could fully understood
the meaning of each statement. After
conducting the pretest, it was revealed that
all items and variables were deemed valid
and reliable. Furthermore, after collecting
several responses regarding the wording of
the questionnaire, authors made some
modifications on several items of the
questionnaire before using it on the actual
research. In the actual research, after all
data were gathered, the data will be
carefully checked and reviewed in order to
ensure that all of the questionnaires were
properly and completely filled by the
respondents. After completing the
checking process of the questionnaires, the
data were then will be analyzed using
PLS-SEM method in order to know the
relationship between variables.
4. Result and Discussion
4.1 Respondent’s Profile
Out of 200 questionnaires which
were distributed, a total of 185 were usable,
and therefore were further used in this
research. 15 questionnaires were omitted
since respondents didn’t fully answer all of
the questions, some questions were left
blank, and respondents giving the same
answer for all questions. Therefore, a total
of 185 were deemed usable. Before
conducted an analysis on the data, the
respondent’s demographic analysis were
conducted in order to know the profile of
the respondents. Based on the result, it was
revealed that the majority of the
respondents were male (69.2%), and aged
between 19 to 24 years old (48.1%).
Furthermore, the majority of the
respondents were students (56.2%), and
had an average monthly spending between
Rp 2.000.001 to Rp 5.000.000 (54.6%).
After completed the analysis of the profile
of the respondents, the data were then
further processed in order to analyze and
determine the relationship between
variables.
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 31
Table 1. Respondent’s Profile
Demographics variables
Category
Frequency
Percentage
Gender
Male
57
30.8%
Female
128
69.2%
Age
18
15
8.1%
19 – 24
89
48.1%
25 – 30
39
21.1%
31 – 36
32
17.3%
37
10
5.4%
Occupation
Student
104
56.2%
Entrepreneur
26
14.1%
Private employee
33
17.8%
Other occupation
22
11.9%
Monthly spending
Rp 2.000.000
27
14.6%
Rp 2.000.001 - Rp 5.000.000
101
54.6%
Rp 5.000.001
57
30.8%
Source : Data analysis (2018)
4.2 Measurement Model (Outer
Model) Analysis
Before the data were analyzed in order to
determine whether the independent
variables discussed in this research did
have an impact toward customer
satisfaction, a measurement model
analysis were first conducted in order to
determine whether the data had fulfilled
the validity and reliability criteria of the
model. Hair, Ringle and Sarstedt (2011)
stated that in PLS, goodness-of-fit
measurement were conducted both the
measurement model analysis and the
structural model analysis. In this analysis,
several criteria were determined in order
to analyze whether the items and variables
had fulfilled the validity and reliability
requirements, such as the factor loadings
value of each items should exceeded 0.7,
the AVE value should exceeded 0.5 and
the square root value of AVE should be
greater than the correlation between latent
variables (discriminant validity
assessment), in which all items and
variables should fulfilled those criteria in
order to be deemed valid. Moreover, both
the value cronbach’s alpha and the
composite reliability of each variables
should exceeded 0.7 in order for the model
to be deemed as reliable.
32 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
Table 2. Measurement Model (Outer Model) Assessment
Items
Variables
Cronbach’s alpha
Composite
Reliability
AVE
WD1
Website Design
0.783
0.757
0.501
WD2
WD3
WD4
REL1
Reliability
0.780
0.818
0.525
REL2
REL3
REL4
TS1
Time Saved
0.794
0.789
0.610
TS2
TS3
PV1
Product variety
0.866
0.886
0.509
PV2
PV3
DP1
Delivery performance
0.818
0.725
0.601
DP2
DP3
DP4
CS1
Customer Satisfaction
0.803
0.767
0.623
CS2
CS3
CS4
Source : Data analysis (2018)
Table 3. Discriminant Validity Assessment
Website
Design
Reliability
Time
Saved
Product
variety
Delivery
Performance
Customer
Satisfaction
Website Design
0.708
Reliability
0.670
0.820
Time Saved
0.457
0.702
0.765
Product variety
0.501
0.657
0.685
0.772
Delivery
performance
0.568
0.598
0.534
0.601
0.739
Customer
Satisfaction
0.608
0.683
0.569
0.635
0.714
0.809
Source : Data analysis (2018)
Based on the measurement model
assessment, it was revealed that all items
and variables had fulfilled the
measurement model criteria, since all items
and variables had been deemed valid and
reliable. Moreover, based on the result of
the discriminant validity assessment
presented on table 3, it could be concluded
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 33
that the square root value of AVE of each
variable had been greater than the
correlation between latent variables. For
example, the square root value of AVE of
variable website design quality (0.708) was
greater than the correlation between latent
variables, such as reliability (0.670), time
saved (0.457), product variety (0.501),
delivery performance (0.568), and
customer satisfaction (0.608). After the
model had passed the measurement model
criteria, the data were then further analyzed
in the structural model assessment in order
to determine the relationship between
variables, and also to find out whether the
independent variables had a positive effect
toward customer satisfaction.
4.3 Structural Model (Inner Model)
Analysis
The structural or inner model
analysis was conducted in order to
determine the relationship between
variables discussed in this research. In the
inner model analysis, the relationship
between variables will be assessed using
two criteria, which are the R-squared (R2)
value and the path coefficient value using
bootstrapping technique. For the path
coefficient assessment, a cut-off value of
1.96 with 5% of significance level were
used in this research, in which independent
variables had a positive impact on
customer satisfaction if the t-value is
greater than 1.96. In the other hand, if the
t-value between variables were below than
1.96, then it could be assumed that the
independent variable don’t have a positive
effect on customer satisfaction.
Furthermore, t-value assessment was also
used as a method to test the hypotheses, in
which the hypothesis will be rejected if the
t-value between variables was lower than
1.96, and the hypothesis will be accepted if
the t-value between variables was greater
than 1.96.
Table 4. Path Coefficient analysis
Relationship between Variables
t-statistics
Cut-off value
Hypotheses Testing
Result
Website design positively affect
satisfaction
1.274
1.96
Not Supported
Reliability positively affect satisfaction
2.325
1.96
Supported
Time saved positively affect satisfaction
2.648
1.96
Supported
Product variety positively affect
satisfaction
3.902
1.96
Supported
Delivery performance positively affect
satisfaction
2.988
1.96
Supported
Source : Data analysis (2018)
Table 5. R-Squared Assessment
Variable
R-Squared
Customer Satisfaction
0.657
Source : Data analysis (2018)
Based on the structural (inner model)
assessment, it was revealed that the
r-squared value is 0.657 or 65.7%. This
result means that customer satisfaction
were explained by the independent
variables, which are consisted of website
design, reliability, time saved, product
variety, and delivery performance, by
65.7%, while the rest (32.3%) were
explained by the other variables which
34 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
were not discussed in this research.
Furthermore, based on the path coefficient
analysis, it was revealed that out of 5
variables, website design quality turned out
to be a factor which didn’t have a
significant impact toward customer
satisfaction.
The first hypothesis proposed that
website design positively affect customer
satisfaction. However, based on the results,
it was revealed that website design has no
positive effect on customer satisfaction or
website design is not significantly affect
customer satisfaction, since the t-value was
lower than the cut-off value of 1.96. Thus,
hypothesis 1 (H1) was not supported. This
result suggest that in the Indonesian
e-commerce industry, consumers didn’t put
too much attention or the attractiveness or
the quality of a website, since website only
been perceived as an intermediary which
connect consumers and the sellers.
Therefore, website design didn’t affect
consumers’ level of satisfaction, since it
only act as a “bridge” which enables the
company to communicate with the
consumers (or potential buyer).
The second hypothesis proposed that
reliability positively affect customer
satisfaction. Based on the result it was
revealed that reliability has positive effect
toward customer satisfaction since it’s
t-value was greater than 1.96 (2.325 >
1.96). Thus, the second hypothesis is
supported. The third hypothesis proposed
that time saved positively affect customer
satisfaction. Based on the result, it was
revealed that time saved has positive effect
toward customer satisfaction since the
t-value was greater than 1.96 (2.648 > 1.96)
Thus, the third hypothesis is supported The
fourth hypothesis proposed that product
variety positively affect customer
satisfaction. Based on the result, it was
revealed that product variety has positive
effect toward the customer satisfaction
since it’s t-value was greater than 1.96
(3.902 > 1.96). Thus, the fourth hypothesis
is supported. The fifth hypothesis proposed
that delivery performance positively affect
customer satisfaction. Based on the result,
it was revealed that delivery performance
has positive effect toward the customer
satisfaction since it’s t-value was greater
than 1.96 (2.988 > 1.96). Thus, the fifth
hypothesis is supported.
The objective of this research is to
know whether or not there’s a positive
effect between website design, reliability,
time saved, product variety, delivery
performance toward customer satisfaction
in the Indonesian e-commerce industry.
The testing of all five hypotheses in this
research had revealed that four variables,
namely reliability, time saved, product
variety, delivery performance proved to
have a positive and significant effect on
customer satisfaction, while website design
didn’t had a significant impact on customer
satisfaction. This was in line with the
previous research conducted by Ludin and
Cheng (2014), in which website design
didn’t significantly impact customer
satisfaction. In which it was revealed that
Malaysian young people has low
involvement in buying products online,
hence they did not have much past
experience in using the website for
shopping. If they have low involvement of
the website shopping, then they are also not
notice too much on the visual appearance
or the features provided on the website.
Moreover, on the online purchase on
e-ticketing in Mongolia conducted by
Byambaa and Chang (2012), website
design has no effect toward online
satisfaction, in which the online consumer
put their focus more on the security when
transaction the website. Moreover, they
also prefer to buy ticket directly from the
airlines office in which it has face-to-face
interaction of buyer and seller. In the other
hand, in Indonesia, Dharmesti and
Nugroho (2012) has conducted their
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 35
research in the context of online store in
Indonesia and the sample sizes are 208
respondents. The result is website design
has not significantly affect the online
consumers’ satisfaction, in which the
respondents put more emphasize on the
security, delivery performance, and good
customer service rather than good-website
design.
Another study conducted by
Paramita and Nugroho (2014) also on the
context of website shopping in Indonesia,
also found that the design of the website
has no significant relationship in creating
online customer satisfied. On their
research, their respondent argues that the
design is not the main consideration to
make them satisfied, but more likely about
the delivery the product in designated time,
or provide good quality of information on
the online product could more make them
satisfied over the web store. Moreover, in
the e-commerce industry, the quality of the
website developed by a company didn’t
have an important role in influencing
people’s satisfaction, despite played an
important part or factor which could the
extent and quality of the communication
conducted between consumers and sellers
(since no face-to-face communication were
occurred in the e-commerce industry). It is
mainly because since website only served
as a “bridge” to connect consumers and
sellers, the level of importance that it has
on satisfaction was lower compared to the
other variables (such as reliability, time
saved, product variety, and delivery
performance). In this case, companies
would struggle to instill satisfaction on
consumers’ minds (make consumers
satisfied) if they weren’t able to serve their
consumers well (for example, consumers
will be disappointed if the there are not
many varieties of products sold or offered
by the companies. Or, in the other word,
consumers will be disappointed if the
amount of variety regarding the products or
services offered by the companies were too
“narrow” which cause consumers to have
little choice in regard with their buying
behavior or buying preferences toward the
products.
There is a high chance that
consumers will be more disappointed if
companies fail to ensure the reliability
regarding the delivery system of the
product rather than when the website used
to access the web services of the company
failed. It is mainly because as consumers
could explore another website or method to
access the companies’ e-commerce page, it
would be difficult for consumers to access
another method to deliver the products to
it’s destination once the products had been
sent. Therefore, if the products failed to
reach the consumers’ address in a timely
manner, then it would disappoint
consumers, which could cause
dissatisfaction to occur and grow on
consumers’ mind. When this happened, it
would be difficult for the company to
solve, reduce, or eliminate the feeling of
dissatisfaction which had already occurred
since there’s a tendency that consumers
will find another alternative or competitors
to buy the either the same or different
products in the future.
Consumers level of dissatisfaction
tend to lower when they felt that they can’t
access the website because of an unknown
or unforeseen circumstances, as they
realize that such an error would be solved
in a matter of time. Moreover, nowadays,
almost every e-commerce companies had
developed a mobile application software
which could act as an alternative to access
the companies’ web page, in which,
consumers (or potential consumers) who
had downloaded the app could access the
companies’ web portal by “tapping” on the
logo of the app. Using this way, there’s no
need for consumers to access the
companies’ e-commerce portal through the
conventional website, thus minimizing (or
36 DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019
even eliminating) the risk of website error.
Therefore, it is understandable on why
website quality didn’t have a significant
impact on customer satisfaction, since the
importance of website was still lower
compared to the other variables studied in
this research.
Similarly, previous research had
underlined that possibility that the design
of the website might likely act as the
factor which will draw potential customers
to visit the website and then buy the
product from the website. A good website
design also might be more affect to the
purchase intention, rather than satisfaction.
This findings was also in line with the
statement on Kotler and Keller (2009),
which stated the key challenge in this
industry was to design an attractive
website on first viewing and interesting
enough to encourage repeat visit on the
next days. Previous research from
Paramita and Nugroho (2014) also support
this findings in which a good website
design can be more influential to the
purchase intention from the potential
customer. However, in order to satisfy
customers and retaining them, the services
performed by online company, such as
reliability or the delivery performance play
more important role compared to website
design. Therefore, the first hypothesis was
not supported in this research.
4.4 Managerial Implications
Based on the result of the research
above, it was revealed that reliability, time
saved, product variety, and delivery
performance had positive effect on
satisfaction, while website design didn’t
have a significant impact on customer
satisfaction. This results indicated that the
quality of a website (for example, the
navigational aspects of a website, the
aesthetical aspects of a website, the layout
of a website, et cetera) didn’t influence
people’s satisfaction toward e-commerce
websites. In this case, website was only act
as a “bridge” which connect or act as an
intermediary between customers (or
potential customers) to seller.
Furthermore, the other variables,
such as reliability, time saved, product
variety, and delivery performance were
revealed to have a positive impact on
satisfaction. These findings indicated that
the timeliness of a website (e-commerce
company) in regard with the service that
they offer to customers, the reliability
aspect of a website, the delivery
performance of the e-commerce company
(for example, the goods that were ordered
by customers were safely and timely
arrived at the destination), the timeliness
of the service performed by the company,
and the variety of products offered by the
company to it’s customers through it’s
website could influence people’s
satisfaction toward the company.
5. Conclusions
Based on the result of the research above,
it was revealed that reliability, time saved,
product variety, and delivery performance
had positive effect on satisfaction, while
website design didn’t have a significant
impact on customer satisfaction.
Regarding this result, it was suggested that
companies specializing in the e-commerce
industry should keep providing the
products and services at the highest level
to it’s consumers, in which only by then,
consumers will satisfy and enjoy buying
products from the website in the future,
and more likely to repeat their purchasing
experience on the same website.
Furthermore, despite the extensive
nature of this research, it didn’t mean that
this research is free from limitations. First
of all, this research only conducted an
analysis on the e-commerce industry in
Indonesia, thus the results generated in
this research might not be generalizable to
the other companies. Further research
DeReMa Jurnal Manajemen Vol. 14 No. 1, Mei 2019 37
might conduct another research using this
topic in another country in order to
increase the generalizability of the topic.
Second, there are only five variables
discussed in this research in order to
analyze their relationship toward customer
satisfaction. However, there might be
another variables which could also
impacted customer satisfaction which
weren’t discussed in this research. Further
research might conduct another research in
this topic in order to explore the other
variables which might have a positive
impact on customer satisfaction. Third,
this research was conducted in the
e-commerce industry, in which might
hinder the result of this research might not
be generalizable to the other industry.
Therefore, further research in the other
industry were encouraged in order to
increase the generalizability and the
understandings of this topic in the other
industry.
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